The Insys Therapeutics bankruptcy news coming out on Monday has INSY stock tanking hard.
Insys Therapeutics (NASDAQ:INSY) says that it has filed for Chapter 11 bankruptcy protection. The company will be using this time to sell off assets of its business in an effort to cover legacy legal liabilities.
Companies filing for bankruptcy to reorganize their business is one thing, but the Insys Therapeutics bankruptcy is particularly bad. The company isn’t just planning to sell off some of its assets. Instead, it notes that it will be selling “substantially all” of its assets.
While the Insys Therapeutics bankruptcy is taking place, the company says that it plans to continue normal operations. This includes paying wages to employees, continuing benefits and making payments to vendors.
Andrew G. Long, CEO of the company, has this to say about the Insys Therapeutics bankruptcy news.
“After conducting a thorough review of available strategic alternatives, we determined that a court-supervised sale process is the best course of action to maximize the value of our assets and address our legacy legal challenges in a fair and transparent manner. INSYS has compelling assets and a highly talented team. We believe this process will provide us with a forum to negotiate an equitable resolution with our creditors and represents the best opportunity for our people and our business.”
INSY stock was down 52% as of Monday afternoon and is down 69% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.